TIDMZEN
RNS Number : 4349P
Zenith Energy Ltd
08 February 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
February 8, 2019
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Financing and Operational Update
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE; OSE: ZENA-ME) the listed international oil & gas
production company operating the largest onshore oilfield in
Azerbaijan, is pleased to announce that as result of market demand
it has completed two separate offerings, one in Canada, (the
"Canadian Financing"), and the other in the United Kingdom, (the
"UK Financing"), with a consortium of private and institutional
investors to raise a total of GBP606,640 (approximately
CAD$1,125,950 or NOK 6,687,480).
The Company intends to use the aggregate proceeds of the
Canadian Financing and the UK Financing to increase its continued
investment in its Azerbaijan field operations and for general
working capital.
Canadian Financing
Zenith has issued a total of 10,364,640 common shares of no par
value in the capital of the Company ("Common Shares") at a price of
CAD$0.05 (the "Canadian Issue Price") in connection with the
Canadian Financing to raise gross proceeds of CAD$518,232
(approximately GBP303,560 or NOK 3,346,390).
Each subscription for a Canadian Financing Common Share has
attached a share purchase warrant with a duration of twelve months
and an exercise price of CAD$0.10.
The Canadian Financing Common Shares are subject to a four-month
hold period under the rules and regulations of the TSX Venture
Exchange and applicable Canadian securities laws. An application
for the Canadian Financing Common Shares to be listed on the
standard segment of the FCA Official List and to be admitted to
trading on the London Stock Exchange Main Market for listed
securities will be made within 12 months of the issue of the
Canadian Financing Common Shares.
The Canadian Issue Price is at a discount of 17 percent to the
closing market price of CAD$0.06 per Common Share admitted to
trading on the TSX Venture Exchange on February 7, 2019.
UK Financing
Zenith has issued a total of 10,102,694 Common Shares of no par
value in the capital of the Company at a price of GBP0.03 (the "UK
Financing Issue Price") in connection with the UK Financing (the
"UK Financing Common Shares") to raise gross proceeds of GBP303,080
(approximately CAD$607,718 or NOK 3,341,090).
The UK Financing Issue Price is at a discount of 13 percent to
the closing middle market price of GBP0.034 per common share
admitted to trading on the standard segment of the FCA Official
List of the London Stock Exchange Main Market for listed securities
on February 7, 2019.
Application has been made for the UK Financing Common Shares to
be admitted to the standard segment of the FCA Official List and to
trading on the London Stock Exchange Main Market for listed
securities ("Admission").
It is expected that Admission will become effective and that
unconditional dealings in the UK Financing Common Shares will
commence on or around 8.00 a.m. (GMT) on February 13, 2019.
Operational Update
As announced on January 7, 2019, preparation activities for well
deepening operations in well C-37 of the Jafarli Field have been
completed successfully.
The Company has defined an agreement with a third-party service
provider to begin civil works at the C-37 well location and expects
mobilisation of the necessary equipment to take place in due
course. Video updates regarding the progress of this work will be
disseminated via the Company's corporate website and social media
channels.
Zenith can confirm that its operational team has performed
cleanout operations in well C-26 with the target depth of 3,920
metres (production casing shoe) using the Company's A-80
truck-mounted workover rig to determine the well's suitability for
deepening operations. As announced on January 7, 2019, well C-26,
an adjacent well to C-37 in the Jafarli Field, intersects the
Middle Eocene and Upper Cretaceous formations of the same
unexploited structure identified as the target zone for well
deepening operations in well C-37. During the cleanout it was
discovered that well C-26 has production casing damage at a depth
of 1,630 metres rendering the well unsuitable for well deepening
operations.
The Company's operational team has therefore mobilised the A-80
workover rig to a second adjacent well to C-37, C-30, where it is
performing similar well tests to determine the integrity of the
production casing and thereby ascertain whether well C-30 might be
suitable for well deepening activities. Zenith will provide updates
as appropriate once the outcome of these investigations is
clear.
BD-260 Drilling Rig
The Company has received confirmation from B Robotics W S.r.l.,
("Robotics") that shipment of the BD-260 drilling rig, purchased by
Zenith's oilfield service company subsidiary, Zena Drilling
Limited, is in progress.
In addition, as announced on January 23, 2019, the drilling
equipment purchased from Robotics for a total of EUR 720,000 is
being transported in the same shipment.
Zenith expects arrival of the BD-260 drilling rig to field
operations in Azerbaijan to take place during the first two weeks
of March 2019. Assembly of the rig is planned to begin immediately
after delivery. The Company is currently in the process of defining
the BD-260's first operational deployment.
Tender Process for Well C-37 Deepening Operation
The Company can confirm that it is currently in the process of
completing tender evaluations for the C-37 well deepening operation
in consultation with its partner, SOCAR.
As announced on January 7, 2019, 12 companies have participated
in the tender by submitting commercial and technical bids for
deepening operations and the required ancillary services.
Zenith is seeking to receive further bids from other drilling
rig contractors with the dual objective of enhancing the
competitiveness of the tender process, and achieving the shortest
possible delay between the awarding of a contract to a drilling rig
contractor and the mobilisation of the drilling rig to the C-37
well location.
Total Voting Rights
Following the aforementioned UK Financing and Canadian
Financing, the Company wishes to announce, in accordance with the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules, the following information following Admission:
Class of share Total number Number of Total number
of shares voting rights of voting
per share rights per
class of share
Common shares in
issue and admitted
to trading on the
Main Market of the
London Stock Exchange 226,422,852 1 226,422,852
--------------- ---------------- -----------------
Common shares in
issue and admitted
to trading on the
TSXV 260,427,064 1 260,427,064
--------------- ---------------- -----------------
Common shares in
issue and admitted
to trading on the
Merkur Market of
the Oslo Børs 260,427,064 1 260,427,064
--------------- ---------------- -----------------
No shares are held in treasury. The above figure for total
number of common shares may be used by shareholders in the Company
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am grateful to our new and existing institutional
shareholders, as well as other major shareholders, who have
participated in these offerings. As announced in past months, the
Company has made significant progress, on both a corporate and
operational level, which has created a very strong opportunity for
value creation in the event of a successful fulfilment of our vast,
unchanged potential in the period ahead."
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Optiva Securities - Broker
Christian Dennis
Jonathan Brown
Tel: + 44 (0) 203 981 4179
Allenby Capital Limited - Financial Adviser
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London
Stock Exchange (LSE:ZEN). In addition, the Company's common share
capital was admitted to trading on the Merkur Market of the Oslo
Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a
multilateral trading facility owned and operated by the Oslo
Børs.
The Company was assigned a medium to long-term issuer credit
rating of "B+ with Positive Outlook" on October 8, 2018 by Arc
Ratings, S.A.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Republic of Azerbaijan, in
2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, condensate and
electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
Forward-looking statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this press release contains forward-looking statements
and information concerning the admission of Zenith common shares to
the Main Market for listed securities of the London Stock Exchange,
well deepening operations on certain of the Company's wells and the
delivery of a drilling rig and certain other drilling equipment.
The forward-looking statements and information are based on certain
key expectations and assumptions made by Zenith, including the
ability to execute its strategy and realise its growth
opportunities including its ability to finance and execute its
plans. Although Zenith believes that the expectations and
assumptions on which such forward-looking statements and
information are based are reasonable, undue reliance should not be
placed on the forward-looking statements and information because
the Company can give no assurance that they will prove to be
correct. All timing given in this announcement, unless stated
otherwise is indicative and while the Company endeavours to provide
accurate timing to the market, it cautions that due to the nature
of its operations and reliance on third parties this is subject to
change often at little or no notice. By its nature, such
forward-looking information is subject to certain risks and
uncertainties (both general and specific) that could cause actual
events or outcomes to differ materially from those anticipated or
implied by such forward-looking statements. These risks and
uncertainties, include, but are not limited to, Zenith being unable
to finance or realise growth opportunities. Readers are cautioned
not to place undue reliance on this forward-looking information,
which is given as of the date hereof, and to not use such
forward-looking information for anything other than its intended
purpose. Zenith undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
The forward-looking information contained herein is expressly
qualified by this cautionary statement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IOEEAPAXEDLNEFF
(END) Dow Jones Newswires
February 08, 2019 02:00 ET (07:00 GMT)
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Jul 2023 to Jul 2024